Sunday, October 27, 2013

US CONSTRUCTION MARKET WILL GROW RAPIDLY TO 2025!


At a time when the US economy is seemingly past the latest danger point (the recent government shutdown), it is heartening to learn that the US construction market is forecast to be one of the world’s fastest growing in the period to 2025.

In our latest report (for Q3 2013), we at Rider Levett Bucknall believe that while the U.S. construction industry is continuing to recover, the trend remains the same as it has for the last several years; slow and uneven. Housing continues to lead the expansion, trying to keep up with population growth, while commercial real estate is coming back more quickly in cities where vacancy rates are lowest. Activity in the hospitality sector is relatively strong but government activity remains weak due to constrained budgets.

Looking further ahead, the benchmark global study “Global Construction 2025” (by Global Construction Perspectives and Oxford Economics) predicts that the global construction market will grow by 70% to reach $15 trillion by 2025, with meteoric growth concentrated in three countries - China, the US and India; they account for 60% of the growth between them.
The outlook for the US is very positive, with growth of over 75% forecast between 2012 and 2025. Our rapidly increasing population means that the country will need to build 20 million homes by 2025 (1.5 million a year which is consistent with the trend that we have reported in the past).
The outlook for Canada is also strong, with close trade links to the US, high rates of population growth and the exploitation of oil and shale gas reserves all helping to boost construction output. In addition, there is a need to improve Canada’s infrastructure and both the federal and provincial governments have long-term investment plans for this.
So, all in all, good longer term prospects in both countries which is definitely good news!

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